AUDUSD: had a generally solid session

Jim Langlands FX Charts

Preferred Strategy: The Aud had a generally solid session, underpinned by yesterday’s solid jobs data, and then for the scramble to buy Aud/Nzd after the announcement of the Labour Coalition Government. The short term momentum indicators are a little mixed on Friday although the dailies remain positive so a run towards 0.7900 would seem possible at some stage. Given the general lack of data it may be a rangebound session, but further AudNzd demand would not surprise. On the other hand, Iron Ore was down 3.5% today and may dent demand. Overall, I suspect that we could well be confined to another choppy range today, again confined within 0.7800/0.7900. Note the potential reverse head/shoulder formation in the chart. A move above 0.7910 would target 0.8060.

Author

Jim Langlands

FX Charts

Jim Langlands began his trading career in the commodities markets in London in 1976, before moving to Australia in 1979 to work as a floor trader on the Sydney Futures Exchange.

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